 I can evaluate the causes, economic challenges, and response to the Great Depression in the United States.  I can analyze charts and graphs to better understand important information.  I can describe how the Great Depression had an impact on the global economy.  I can successfully summarize and take detailed notes of concepts and data presented to me in visual and audio formats.

Create a See, Think, Wonder chart in your notes

Banks in operation25,56814,771 Prime interest rate5.03%0.63% Volume of stocks sold (NYSE) 1.1 billion0.65 billion Privately earned income $45.5 billion$23.9 billion Personal and corporate savings $15.3 billion$2.3 billion

 Drop in farm prices  Excesses of the 1920’s  Money supply dropped  Collapse of the U.S. banking system  Overextension of credit  Increased inventories of goods  Immediate cause: October 1929 stock market crash

Money supply = amount of currency ($) in circulation  When the money supply drops; spending on goods declines, which causes businesses to cut prices/production and lay off workers  As a result, less people are earning even less money (Deflation)

 With declining incomes, its harder for borrowers to repay loans.  Which causes people to go bankrupt.  Combined with the crash in the stock market, it contributed to a deepening recession. How is deflation bad for the economy?

 Bank Runs: Occur when large amounts of people withdraw money at the same time.  As more people withdraw, the likelihood of default (when bank cannot pay) increases, and this encourages further withdrawals Crowd at New York's American Union Bank during a bank run early in the Great Depression.

Overall U.S. production plummets U.S. investors have little or no money to invest U.S. investments in Germany decline German war payments to Allies falls off Europeans cannot afford American goods Allies cannot pay debts to the U.S. World Payments

 Named after President Herbert Hoover, hoovervilles were shanty-towns built by the homeless, unemployed, and poor, during the Great Depression

Banks in operation25,56814,771 Prime interest rate5.03%0.63% Volume of stocks sold (NYSE) 1.1 billion0.65 billion Privately earned income$45.5 billion$23.9 billion Personal and corporate savings $15.3 billion$2.3 billion

 International trade dropped more than 50%  Unemployment went as high as 25% in the U.S., but in some countries it was as high as 33% United States Great Britain FranceGermany Industrial Production -46%-23%-24%-41% Wholesale Prices-32%-33%-34%-29% Foreign Trade-70%-60%-54%-61% Unemployment+607%+129%+214%+232+

 Franklin D. Roosevelt (elected President in 1933) declared a bank holiday, closing all banks until they received a gov’t license.  Gave time for U.S. banks to recuperate  Restored confidence in banking system  As money supply grew, spending increased, and the economy slowly moved forward

 Government programs of relief and recovery.  Employed thousands of people, by creating multiple agencies to help get people jobs and to help industries continue to produce goods

 Back to learning targets: 1. Provide one cause, economic challenge, and response to the Great Depression in the United States.